THREE CONTENT CONSUMPTION HABITS THAT WILL CONTINUE TO CHANGE IN 2018
Americans will watch less and less live TV, rent and buy fewer videos, and go to the movies less.
- Less and less live TV will be watched
In the United States during the last four years, the number of eyes locked on live television has been decreasing between 2% and 6% per year. In the second quarter of 2014, according to Nielsen, the average viewer watched 27 hours and 50 minutes of television per week, whereas by the second quarter of 2017, the weekly viewership decreased by more than 3 hours, to 24 hours and 20 minutes.
It is estimated that at this rate, by the second quarter of 2018, the average viewer will watch 22 hours and 30 minutes a week.
The decrease is much more pronounced among the younger viewers. They have been watching 8% and 17% less live television every week since 2014. The data suggests that live television viewing is becoming an increasingly rare occurrence for many and it is anticipated that with the appearance of more online options for viewing live and on demand content, this trend will continue to increase in 2018 .
- Less videos will be rented and sold
Already, some of us have forgotted the last time we rented a movie at a kiosk. American consumers continue to move away from this traditional way of watching movies at home. Indeed, in both physical and digital formats, the video rental and sales market (through online stores, kiosks and suppliers such as iTunes) continues to decrease at an alarming rate.
Between 2013 and 2017, the industry lost $500 million, generating only $1,000 million in the second quarter of 2017. This decline seems to continue in 2018, with revenues probably in the range of $900 million in the second quarter of 2018.
Apparently, the drop in movie sales and rentals is related to the increasing amount of quality content available in on-demand libraries and new online video services.
- Going to the movies will be less and less common
Similarly, the figures show that fewer Americans are going to the movies. Last summer, for the first time in a decade, the total net sales of tickets did not reach $4,000 million.
Overall, box offices in the United States and Canada ended 2017 with a decline of 5.8%, with a total of $11.3 billion (ticket sales had not fallen so much since 1992).
Large providers of on-demand content are investing large portions of their content budgets in the creation of movies. For example, Netflix says that it will produce 80 films in 2018. This undoubtedly poses a risk to cinema chains.